Phillips 66 Partners's Earnings Outlook

On Friday, April 30, Phillips 66 Partners PSXP will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts covering Phillips 66 Partners modeled for quarterly EPS of $0.81 on revenue of $377.69 million. Phillips 66 Partners EPS in the same period a year ago totaled $0.93. Revenue was $404.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Friday, earnings would be down 12.9%. Sales would have fallen 6.51% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Phillips 66 Partners were trading at $36.71 as of April 28. Over the last 52-week period, shares are down 13.79%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Phillips 66 Partners is scheduled to hold the call at 14:00:00 ET and can be accessed here.